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The global helium market is expected to witness a healthy growth at an assessed CAGR of 3.69% during the forecast period (2018-2023). The main factor driving the market studied is the increasing consumption of helium in the electronics and semiconductor industry. It is used as a protective gas for flushing vessels during the processing of semiconductor chips, and as a cooling gas during the growth of silicon crystals. On the flipside, high cost of the extraction process, owing to the involvement of high-priced equipment, is hindering the growth of the market studied.

Increasing Consumption in the Electronics Industry

The electronics and semiconductor industry is a significant consumer of helium. Helium is used as the sleeve in rods that create LCD screens. It is also used as protective gas for flushing vessels during the processing of semiconductor chips, and as a cooling gas during the growth of silicon crystals. Helium is also considered vital for the manufacturing of optic fiber cables, as the presence of helium in the atmosphere prevents bubble from trapping inside the fiber cables. The global sales of semiconductors was valued at USD 31.3 billion, in April 2017, more than 21% in comparison to April 2016, majorly driven by the tremendous growth in the memory market. Further, the helium market is likely to be driven by the increased connectivity of devices and systems that demand the use of sensors and other semiconductor devices. The mass production of electronics devices in Taiwan, China, and India is responsible for the high demand for helium in the region. Moreover, the Chinese government is aiming to raise up to USD 31.5 billion, to invest in domestic chip companies, in order to build a world-class semiconductor industry, which is likely to further propel the growth of the helium market. Many television manufacturers, such as LG, Samsung, Panasonic, and Sanyo are aiming to build their production facilities in India, owing to the reduced customs duty on open cell panels, by the government, from 10% to 5%, in March 2018. The increase in LCD manufacturing facilities in India is likely to drive the demand for helium in the country at a high rate.

Aerospace Industry to Witness High Demand

From manufacturing to flight, helium is widely utilized in the aerospace and aircraft industry. In space flight operations, helium is used to purge hydrogen systems, and it works as a pressurizing agent for ground and flight fluid systems. It is also used for lifting weather and other surveillance balloons. For instance, in Delta IV rockets, helium was used to maintain pressure in liquid oxygen fuel tanks. As liquid oxygen is burned as rocket fuel, helium is injected into the fuel tanks, to keep them from collapsing. Helium, as a purging gas, can be substituted by nitrogen, except for liquid hydrogen systems. The growth of the commercial aerospace market is likely to lead to the development of new aircraft production programs in emerging countries, especially in China and the Middle East. New agreements are coming up, in order to meet the growing demand for travel, which is likely to boost the demand for helium. The increase in air traffic and production expansion by global manufacturers in the region are expected to augment the demand for helium during the forecast period. Asia-Pacific is expected to be the fastest-growing region in the aerospace industry, with regard to the helium market.

Asia-Pacific to Witness High Growth

Asia-Pacific region witnessed a high growth in the demand for helium in 2017. The increasing production of smartphones and the rapid growth in high-performance computing and artificial intelligence are consistently boosting the demand for semiconductors in China. China is gaining attention, as the fastest growing consumer of nuclear energy, with 38 nuclear reactors already functioning in the country, and 19 more under construction. The increasing focus on the development of nuclear power resources is expected to increase the demand for helium used in the nuclear reactors. Additionally, rapid urbanization, increasing healthcare expenditure, and the growing proportion of the aging population in India are expected to increase the need for medical facilities and devices, which, in turn, is expected to augment the demand for helium used in the sector. However, the consumption of helium in the nuclear power sector in Japan is expected to grow at a slow rate. This can be attributed to the recent restarting of operations in various nuclear power plants in the country. For instance, a few units in the Genkai Nuclear Power Station and Ohi Nuclear Power Station restarted operations in mid-2017. Such investments are expected to boost the market for helium in the region during the forecast period.